IBasis, Inc.

Please prepare following questions for the case:

1. iBasis was the smallest company to be part of the Cisco Partner Network, which arguably brought iBasis very important benefits. How was iBasis able to convince Cisco to treat it as a partner, despite iBasis’s extremely small size?
2. What are the strengths and weakness of the Alliance Agreement provided in the exhibits? As the relationship between iBasis and Cisco deepened, should iBasis have pursued something more formal than the Alliance Agreement? What could have better protected iBasis from falling into the crisis in which it now finds itself?
3. What actions do you recommend iBasis pursue with Cisco in the midst of the current crisis?